G***O 发帖数: 223 | 1 By Evie Liu
Every day, more than 50 market makers on the Nasdaq exchange trade investor
orders, posting bid and ask prices for exchange-listed stocks. One recent
addition, as of Oct. 9, was the first Chinese firm.
Traditionally, most of the market makers on Nasdaq are American, including
Goldman Sachs, Merrill Lynch, and Morgan Stanley, to name a few. Despite the
many participants, however, not all the stocks are sufficiently covered.
While most of the market makers offer quotes for big firms such as Apple (
AAPL), many of the over 100 Chinese companies listed on Nasdaq are covered
by relatively few firms.
That's where Haitong Securities (HAITY) unit Haitong International sees
opportunity. The Hong Kong-based subsidiary recently expanded its business
to the U.S., and handled the U.S. initial public offering of Puxin (NEW) in
June, Haitong's first American IPO. Market-making is the next step.
Right now, Haitong is only registered to make markets for two stocks on
Nasdaq: JD.com (JD), China's equivalent of Best Buy (BBY); and Baidu (BIDU),
which is akin to Alphabet's (GOOGL) Google. But in the future, it plans to
expand the universe to include more smaller names.
"There are a lot of Chinese ADRs listed on Nasdaq, but other than those well
-known names such as JD.com and Baidu, there are a lot of smaller names that
American investors might not know much about," Song Teng, CEO of Haitong's
U.S. branch, said in a visit to Barron's offices.
Part of the reason these stocks are traded less often, Teng said, is because
of a lack of market makers actively quoting prices for them. Liquidity
remains low, trading can therefore become very expensive. "We have the local
knowledge and China insight, but also global reach," said Teng. "For those
names, we can try to provide more liquidity."
The firm also offers its own research on the stocks published through
Haitong International, which will hopefully boost investors' interest in
trading these names, says Teng. "Many of them are very interesting companies
, doing good business in China." | G***O 发帖数: 223 | |
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